Your marketing company has been working on a consulting
project for a client. Your team has worked on the project
for two months, and it is now year-end. The project will be
completed by February of the next year, and the client has
not yet been billed. For the financial statement, how
should project be classified?Should the costs associated
with an uncompleted consulting project be classified as a
work-in-process asset on the balance sheet or should the
cost be expensed on the income statement as a part of the
doing business?why?
- 2 Answers
- 2828 Views
- I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / h.r. sreepada bhagi
As mentioned by Sheril, money spent on the project should be
shown as Work-in-process in the period end Balance Sheet. If
it's charged off to the Profit & Loss A/c in the year of
spending, with our recognising the income associated with,
it will not be in Line with Accrual Concept of Accounting
(Refer the relevant AS issued by ICAI for accounting in
India of the relevant IAS/IFRS (if required for a foreign or
multinational company)
| Is This Answer Correct ? | 0 Yes | 1 No |
What is standing order
please give me information about h form and c form used for which items?
What is the dual aspect concept?
what is mercentile system in accounting
Dear sir, please tell me how to calculate p.f ( provident fund)?
what is bills payable and bills receivable?
How to cancel an invoice and what is the accounting entries
what is the meaning of banking
Difference between expense and expenditure ?
In which we will use Annuity depreciation method?
Explain what are the rules for debit and credit for different accounts to increase the amount in your business accounts?
A sole trader run a business, and he takes every month fixed salary, he says this salary should not be affect in profit and loss a/c, he wants this salary transfer to his capital a/c, means he wants increased his capital - My question is as per the accounting system is it possible?
Audit 
